US unveils 'Operation Economic Outcast' against Iran
WASHINGTON — The Trump administration on Monday launched a major expansion of economic pressure against Iran, unveiling what it described as "Operation Economic Outcast" — a sweeping package of secondary sanctions aimed at cutting off Tehran's remaining financial lifelines.
Treasury Secretary Scott Bessent, who has described the campaign as an "economic D-Day" against Iran, said the objective is to "sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone." He warned that countries and companies continuing to do business with Iran could face secondary sanctions and potentially lose access to the dollar-based financial system.
"Let there be no ambiguity as to the position of the United States," Bessent said at a news conference. "An economic engagement of any kind with this murderous regime will expose those responsible to the full reach of American power."
The announcement comes almost six months into a conflict that has reached a stalemate, with stalled peace talks and Iran blocking most traffic through the crucial Strait of Hormuz. The war, launched by the U.S. and Israel in February, has pushed up energy prices and taken a toll on the global economy.
'Economic D-Day' and collapsing claims
The sanctions push was previewed by President Donald Trump, who wrote on Truth Social: "IRAN IS COMPLETELY COLLAPSING!!!" The remark came ahead of Bessent's announcement and echoed Bessent's own claims, made on Sunday on X, that the U.S. has "dismantled Iran's military capabilities, destroyed nearly 100 percent of its military factories, and buried its nuclear programme."
Iran was quick to dismissure. Deputy Foreign Minister Kazem Gharibabadi said the U.S. turn to financial warfare argues against Bessent's claims. "Is this a victory or an admission of America's defeat?" he asked in a post on X.
Iranian Foreign Minister Abbas Araqchi described the threat as a sign of desperation, saying the measures would fail to force Tehran to capitulate.
Sanctions target sectors and entities
As part of the expansion, the Treasury Department said it is targeting five sectors that Iran relies on: digital assets, technology, gold, aviation, and shipping. The sanctions aim to block Iran's purchase and transport of its petroleum, facilitate of its finances through exchange houses and free trade zones, and activities that sustained its "enablers."
The Treasury also sanctioned nearly 60 entities, individuals and vessels connected to Iranian oil and weapons networks, with officials saying they have mapped Iran's facilitators and financial channels.
Bessent warned that the "entities facilitating money laundering on behalf of Iran will be removed from the US dollar system" and that the "clock just started ticking." He said countries that do not join the campaign will "have to share" and those who "tether themselves to the Iranian regime should expect to share in the isolation of a withering regime."
Countries in the crosshairs
Bessent declines to name the countries that could face secondary sanctions, but the measures target entities in United Arab Emirates, Hong Kong, China, Singapore, and Europe. China, Turkey and the UAE are Iran's largest trading partners.
Bessent said President Trump is making direct calls to world leaders with specific requests, but he did not identify who he has already called. "You have to have a clear idea if you want to make the point," he said.
The U.S. naval blockade has already cut Iranian oil exports through the Strait of Hormuz from about two million barrels per day before the war to roughly 400,000 barrels per day by mid-August, according to maritime tracker Kpler.
Iran's currency, the rial, hit a record low ahead of the announcement, trading at about 2.02 million to the U.S. dollar. According to the Atlanta Journal-Constitution, the Iranian economy is facing inflation and pressure on government payments, but Tehran has been under increasing hardship.
Iranian defiance
The sanctions were met with defiance from Tehran. Economy Minister Ali Madanizadeh said the government is prepared and has a two-year plan to manage the sanctions. Parliament speaker Mohammad Bagher Ghalibaf tweeted that "Americans know that no one buys their bombast" and that the U.S. is not in an economic position to further restrict its relations.
Bessent also made a direct appeal to Iranian soldiers, urging them to question their commanders. "Recall that the Berlin Wall fell when ordinary soldiers decided not to shoot at their own people," he said.
Iranian officials dismissed the threats as a repackaged version of decades-old pressure tactics that have failed to deter Tehran's leadership.
Perspectives
Administration view
The Trump administration casts the sanctions as the final step in a campaign to force Iran to surrender, presenting a clear choice between "complete global isolation and a subsistence economy" or a route back to normalcy. Officials argue that the sanctions will strangle Iranian revenue and bring the conflict to a close.
Tehran's view
Iranian officials reject the premise of the economic offensive, calling it a sign of desperation and an admission that U.S. military objectives have failed. They warn that supporting the sanctions will be viewed as an "act of war" and that Tehran has its own ability to strike back.